Lotte Duty Free COEX branch in downtown Seoul.

Lotte Duty Free has expanded its financial assistance to small- and medium-sized Korean brands in a series of ‘win-win’ measures to mitigate against the impacts of the coronavirus (Covid-19).

The South Korean travel retail giant has shortened the frequency of payments made to Korean suppliers from once per month to twice monthly in a move that will benefit more than 400 partners facing liquidity issues.

A total of KRW150 billion/$122 million will be paid out for the three months from April to June.

FINANCE MECHANISM EXTENDED 

Financial support measures such as low interest rate financing for SMEs totalling KRW50 billion were introduced last year and second tier suppliers, alongside primary trading partners, are now eligible.

Lotte Duty Free has also launched an additional KRW3.5bn stimulus for SMEs, which is designed to strengthen marketing activities for brands to boost sales and store environments.

Additionally, it is broadening its search to enlist new and ‘outstanding’ SMEs via its K-Wave competition launched in 2019.

Fifteen brands selected last year have now entered Lotte Duty Free’s online sales channel, with nine preparing to trade downtown.

“With Covid-19, the entire duty free industry is in a difficult situation, but we have expanded our support to small and medium-sized partners in order to work together with the government and the business community to overcome the crisis.”

As reported, Lotte Duty Free has rolled out a series of adjustments to working schedules to safeguard employees.